Reviews, presenting a well-rounded analysis of Lithuania's economy and financial system as well as the activities of various market participants, and macroeconomic projections drawn up by the Bank of Lithuania.

Laws of the Republic of Lithuania, Resolutions of the Board of the Bank of Lithuania, other legal acts regulating the activities of the Bank of Lithuania, as well as international and inter-institutional agreements.

Positions, guidelines, opinions and explanations of the Bank of Lithuania, decisions thereof on the application of EU guidelines, all of which are relevant for the supervised financial market participants.

Departments

Four autonomous Departments

Alongside four Services and several autonomous Divisions, the Bank of Lithuania’s organisational structure also includes four autonomous Departments, which comprise their respective Divisions:

The Cash Department controls the amount of currency in circulation – one of the major functions of a central bank.

The International Relations Department is responsible for the Bank of Lithuania’s participation in the European System of Central Banks and the decision-making process within the European Union, as well as cooperation with international financial organisations.

The Communications Department informs the public on Bank of Lithuania activities, thus ensuring its transparency.

The Security Department is in charge of the overall security of the Bank of Lithuania assets, valuables entrusted to it for safekeeping, staff, and information, as well as corruption prevention.

Our primary task is to supply banks operating in the country with euro cash; they, in turn, provide it to residents and corporates. Euro banknotes and coins unfit for circulation are returned to the Bank of Lithuania and destroyed. Stocks of euro banknotes and coins, ensuring smooth circulation of cash, are stored in the Bank of Lithuania vaults in Vilnius and Kaunas. To replenish the stocks, we receive shipments of new euro banknotes from different euro area countries, where they are printed. Under the direction of the European Central Bank, national central banks reallocate their banknote holdings, so that there is no shortage or surplus of them in any country. Hence we sometimes send money shipments to other euro area central banks. New euro coins are struck at the Lithuanian Mint, located in Vilnius.

Being part of the euro area and using the single European currency – the euro, Lithuania, like the other members, has the right to issue collector and commemorative euro coins. Our Department is responsible for their creation, mintage and issuance into circulation. We analyse proposals from state authorities, education institutions, public organisations, and private persons concerning themes for coins, and submit them to the Coin Creation Commission for consideration. The Commission confers with renowned artists and historians. The Board of the Bank of Lithuania has the final say on what coins are to be issued, approving the plan for issue of numismatic items. Based on the plan, we issue Lithuanian collector and commemorative coins.

Our Department is in charge of two cash offices in Vilnius and Kaunas, where residents may exchange euro banknotes into larger or smaller denominations in limited amounts free of charge, purchase (exchange) uncirculated circulation and commemorative euro coins with the Lithuanian national side at nominal value, and submit euro and litas banknotes for evaluation. The cash offices exchange litas into euro and worn or damaged euro into currency fit for circulation free of charge.

Seeking to manage cash more effectively, we implemented a cash supply system reform, allowing private cash handlers to be more involved in the process and improve the quality of services provided. For customer convenience, we will be opening an e-shop that will sell collector and commemorative coins issued by the Bank of Lithuania as well as other numismatic items.

Cooperates with the European Central Bank, international institutions and other national central banks

Carries out preparatory work for ECB, EU and IFI meetings

Organises international events at the Bank of Lithuania and coordinates the Board’s activities at the international level

Vilė Urbonienė, Director of the International Relations Department

The mission of the International Relations Department is to develop relations between the Bank of Lithuania and international institutions, ensuring its active and effective involvement in the decision-making processes of the European Union (EU) and international financial institutions (IFIs).

The Department carries out analysis of EU and IFI policies, assesses the international economic environment and economic developments in countries relevant to Lithuania. We make sure that the Board of the Bank of Lithuania is well prepared for international events and meetings.

In developing and implementing the international relations policy of the Bank of Lithuania, the Department maintains close relations and exchanges information with EU and international institutions as well as other national central banks. Together with the Ministry of Finance of the Republic of Lithuania, we organise economic consultations with the International Monetary Fund (IMF) in Lithuania.

The Department is also responsible for ensuring proper involvement of the Bank of Lithuania in ECB, EU and IFI decision-making processes. It initiates and prepares Bank of Lithuania positions concerning issues tackled at EU and international level.

Seeking adequate representation of Lithuania’s interests in the IMF, the Republic of Lithuania became part of the Nordic-Baltic Constituency. In preparing and coordinating the Constituency’s positions as well as positions on relevant EU issues, the Bank of Lithuania is represented by the International Relations Department.

The Department holds international events at the Bank of Lithuania, organises receptions for high-ranking guests. We also arrange working and international meetings of the Board of the Bank of Lithuania, plan their meeting agenda and organise the Board meetings.

Publishes relevant information on the Bank of Lithuania website and social media platforms

Presents the media with the latest news for public broadcast

Issues electronic publications on finances and economics

Presents the history and current state of money at the Money Museum

Rimantas Pilibaitis, Acting Director of the Communications Department

We are responsible for building understanding of the general public, financial market participants, the academic community and Lithuanian and foreign media of the role and functions of the national central bank – the Bank of Lithuania. One of our key communication outlets is the Bank of Lithuania website (www.lb.lt), which provides relevant up-to-date information in both Lithuanian and English. We post the latest news on our social media platforms, present it via media outlets or by sending press releases to journalists and organising press conferences. Live coverage of the events held at the Bank is broadcast online. Bank of Lithuania experts share their insights on economic development and latest projections online, in the press, on the radio and TV; they also participate in public discussions. Through our Department-organised seminars and presentations, residents learn how to manage personal finances. We reply to enquiries received from the general public by email or phone.

The Money Museum, located in the heart of Vilnius, introduces visitors to the history of Lithuanian and world money, while also presenting the single European currency – the euro. We select unique locations across the country to hold presentations of new collector and commemorative coins issued by the Bank of Lithuania. Every few years we organise open-day events at the Bank of Lithuania, garnering great public interest, during which we speak about the activities of the central bank, hold money-related quizzes and showcase armoured vehicles for cash transportation.

Numerous Bank of Lithuania periodicals, presenting varied information for those interested in finances, are available on our website in electronic format. Since the Bank of Lithuania is part of the European System of Central Banks, we maintain close contact with experts from the European Central Bank in preparing ECB publications in Lithuanian and posting them on our website.

We have also published copious amounts of books on monetary and banking history, prominent figures in the field of finances, as well as organised exhibitions and issued complementary publications on money in paintings, photographs, artwork and caricatures.

By presenting unbiased and detailed information on banks in accordance with the Communication Policy of the Bank of Lithuania, we ensure transparency of Bank of Lithuania activities, which is one of our institution’s core values.

Ensures protection of employees and valuables as well as their secure transportation

Ensures security of classified information

Implements ethical standards and anti-corruption measures

Cooperates with law enforcement and regulatory authorities on the prevention of money laundering

Aidenas Karpus, Director of the Security Department

Our employees are the first to greet other Bank of Lithuania employees and guests as we establish the procedure for entering the Bank of Lithuania premises and monitor compliance with said procedure. Our Department also sets and monitors compliance with the procedures for allowing vehicles belonging to the Bank of Lithuania and its employees, our guests, collection vehicles of commercial banks, as well as vehicles of other institutions or persons to enter and leave the premises of the Bank of Lithuania. We are also obliged to protect the employees of the Bank of Lithuania, its valuables and other assets, if necessary – safely transport valuables, arrange and protect Bank of Lithuania valuables transported with vehicles that do not belong to our organisation employing police forces.

In its day-to-day activities, the central bank handles information which constitutes the state or professional secret, the secret of the Bank of Lithuania, uses sensitive ESCB/BPM information. Our Department determines the policy on the management of the security of such information and its application at the Bank of Lithuania. We also establish the policy on personal data processing and ensure its implementation. We set ethical standards and ensure their implementation, introduce anti-corruption measures and coordinate their application, monitor compliance with the legitimacy requirements for the duties of the Bank of Lithuania employees, professional ethics, and requirements for balancing private and public interests.

We cooperate with law enforcement and regulatory authorities in supervising financial market participants and applying measures for the prevention of money laundering and/or terrorist financing.

The Investment Management Departmentis part of the Banking Service. It actively invests Bank of Lithuania financial assets, consisting of nearly 6 tonnes of gold and investment in euro and foreign currency. Return on investment is used to finance Bank of Lithuania activities and make risk provisions; 70 per cent of the average profit earned over the three-year period is transferred to the State Budget for public needs. The Department also invests part of the foreign reserve assets of the European Central Bank (ECB). In managing financial assets and ECB reserves, it concludes transactions and cooperates with foreign financial and credit institutions. Seeking to maximise return on investment, the Department is on constant lookout for new investment strategies and initiates the implementation of new financial instruments and expansion of investment geography.

The Operations and Payments Department is part of the Banking Service. It is responsible for implementing the Eurosystem monetary policy, including the expanded asset purchase programme, carried out by the Bank of Lithuania. The Department also executes payments and settlements initiated by the Ministry of Finance of the Republic of Lithuania as well as other depositors of the central bank and the Bank of Lithuania itself.

The Market Infrastructure Department is part of the Banking Service. The Department is responsible for the development of the competitive and advanced payments market, its experts formulate the payments market policy and conducts oversight of financial market infrastructures. We operate and develop two euro payment systems – CENTROlink and TARGET2-LIETUVOS BANKAS, which is part of TARGET2.

The Economics Departmentis part of the Economics and Financial Stability Service. It researches, models and analyses economic processes over the short and long term. The results obtained contribute to the shaping of Eurosystem monetary policy and help formulate the position of the Bank of Lithuania on other economic policy issues. Economic research and analysis conducted at the Department allow the Bank of Lithuania to measure the impact of monetary policy on the economy as well as project the effect of changes in economic conditions on economic development. The Economics Department investigates economic trends in Lithuania and foreign countries, foresees potential economic development prospects and makes macroeconomic projections, which are updated and published on a quarterly basis.

The Financial Stability Department is part of the Economics and Financial Stability Service. Its obligation is to contribute to ensuring financial stability in Lithuania. The Department forms the Bank of Lithuania macroprudential policy and applies macroprudential tools to reduce systemic risks to the financial sector. For example, in using macroprudential policy measures, it seeks to ensure sustainable credit growth or prevent household over-indebtedness. On an annual basis, the Department prepares and publishes the Financial Stability Review, which provides an analytical assessment of Lithuania’s financial system. Particular attention is devoted to the situation in the domestic banking system and the financial health of its debtors – households and non-financial institutions. In order to receive valuable information used to carry out financial stability analysis, the Department conducts surveys of banks, enterprises and households. It is also responsible for financial institution resolution, payments market policy formation and oversight of payment systems.

The Statistics Departmentis part of the Economics and Financial Stability Service. The Department collects, compiles, develops and publishes financial statistics necessary for carrying out the functions of the Bank of Lithuania and the European Central Bank. Harmonised and comparable statistical information is used to compile euro area statistics, which is the basis for making monetary policy decisions. In the field of statistics, the Department closely cooperates with other data-producing Lithuanian, EU and international institutions. It coordinates the implementation of the IMF Special Data Dissemination Standard in Lithuania and systematically manages it. Seeking to ease the reporting burden for respondents, the Statistics Department maintains and develops securities and loan micro-databases. All statistics compiled are available on the Bank of Lithuania website free of charge.

The Accounting Department is part of the Organization Service. It is responsible for the formation and implementation of the financial accounting policy, Bank of Lithuania financial accounting and its control. The Department draws up the Bank of Lithuania daily balance sheet, prepares annual financial statements, other statistical and tax reports. It is also responsible for the preparation of financial accounting information necessary for management purposes, carries out the calculation of expenses necessary for performance of the functions of the Bank of Lithuania.

The Information Technology Department is part of the Organization Service. It monitors the Bank’s computer network, services employee computers, tests and installs software and quickly eliminates IT failures and errors. The Department maintains constant IT system security, analyses IT security incidents, carries out IT system security checks, as well as keeps in contact and coordinates actions with the European Central Bank in relation to these issues. It designs, improves and develops the IT systems used at the Bank of Lithuania, looks for and purchases new hardware and software, necessary IT services.

The Services Administration Department is part of the Organization Service. It accepts queries, requests and complaints from residents, organisations and enterprises and passes them on to other units which assess and solve issues raised according to their field of expertise. The Department takes care of Bank of Lithuania buildings and premises, maintains safe and healthy working conditions and seeks to consistently improve them. The Services Administration Department sets up workstations, maintains their comfort levels and ensures general upkeep. It also manages two canteens that provide catering services for employees and guests visiting our organisation.

The Prudential Supervision Department is part of the Supervision Service. It issues authorisations and licences to financial market participants, organises exams for financial brokers and insurance brokers, seeking to ensure that only transparent, financially viable and qualified market participants enter the market. Considering their risk profile and the level of risk, the Department provides proposals on the setting of capital adequacy, risk management and other requirements, the purpose of which is to ensure sound and smooth activities as well as discharge of liabilities to customers. The Department regularly monitors the activities of banks, insurance undertakings, credit unions, payment and other financial market participants subject to its supervision, and devotes great attention to the field of money laundering and terrorist financing prevention. In pursuit of efficient supervision, the Department follows the cooperation principle, maintaining a permanent dialogue with financial market participants, based on professionalism, openness, and respect.

The Financial Services and Markets Supervision Department is one of two structural units of the Supervisory Service. Our Department analyses financial products, their potential impact on the market, risk level and suitability. We prepare various thematic reviews of services provided by undertakings, their activities and trends in the market of financial services and products; we also analyse whether the consumers are treated fairly and professionally.

We aim at ensuring transparency and fair operation in the financial market by monitoring and analysing trading in the markets in financial instruments, carrying out investigations of potential abuse, and monitoring transactions concluded in Nasdaq Vilnius. We also actively work with issuers whose shares are exchange traded, analyse prospectuses of securities issues and takeover bid circulars submitted by them, assess compulsory equity purchasing prices, follow disclosure of information related to issuer activities and financial instruments, as well as compliance of financial statements with applicable accounting and financial reporting standards.

We devote substantial time to communication with supervised financial market participants and their clients, analysing complaints from consumers and disputes over the provision of financial services or financial products. We are responsible for oversight of the distribution of proper information on financial services – correct information helps people take rational decisions.

We seek to promptly react to the changing financial services and markets environment; hence, we devote much attention to the improvement of financial market regulation.